Investment Strategy
FUNDS MANAGEMENT
The Fund invests its capital in companies with a significant discount in the share price relative to perceived inherent value. These companies have superior fundamental prospects, yet negative external events have attracted a flight of investors. The Fund seeks to assist investee companies to demonstrate, grow and realise their inherent value.
Bottom-up
Valuation
Macro
Drivers
Unique
Insights
Active
Management
Look for companies run by passionate co-owners
Identify large gap between market and inherent value
Research the prevailing industry conditions
Meet management, suppliers,customers and competitors
Determine catalysts that could unlock inherent value
Actively engage in implementation of strategic change
Long-term focus beyond recent financial results
Remain engaged with management and possibly board
Alignment with unitholders and investee firms
15% target annual return and solid track record
ESG awareness in investment selection
Performance-based remuneration and personal investment in Fund
Longer-term outlook and investment approach
Market out-performance through patient, active investing
Strong Due Diligence and Risk Management
Supporting emerging dynamic businesses
WE ARE ACTIVE INVESTORS
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We work with management to develop and implement strategic change to improve business performance and unlock value for our Unit holders
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We engage with all company stakeholders to achieve strategic alignment
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We will occupy board positions where required to drive our strategy
WE FISH IN UNCROWDED WATERS
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We focus on microcaps flying under the radar of larger institutions
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We intend to keep Net Asset Value of the Fund below $50m for the foreseeable future
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For many of our investments we will be one of few institutional investors
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We believe that small, concentrated funds can generate larger long-term returns
WE MEET CHALLENGES THAT OTHERS AVOID
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The Microcap companies we invest in have superior assets that are adversely impacted by non-operational externalities such as fractious shareholders, domineering directors or industry pressures
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Such externalities tend to cause uncertainty and under-valuation by the market, offering us an opportunity that many others don’t see
